A client’s employee is off on indefinite unpaid leave due to caring responsibilities. The employee has asked the employer to make them redundant so they can make a claim on an income protection policy. What are the implications of this for the employer – with the employee and with the insurance provider?

Our view is that this employer should be wary of granting this request.

First and foremost, this may not be a genuine redundancy situation. In order for a genuine redundancy to have taken place, the proposed termination must meet the statutory definition of a redundancy from Art 174(1) of the Employment Rights (Northern Ireland) Order 1996, namely, that an employer has ceased or intends to cease to carry on the business for the purposes of which the employee is employed, or the requirements of the business to carry out that particular kind of work has ceased or diminished. Further, in a redundancy situation, due regard must be given to following the appropriate procedure of consultation,